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The banks still do this; they leverage deposits to back the loans they provide. However, they have little to no impetus to provide a reasonable interest rate o
by dleslie 6y ago
The banks still do this; they leverage deposits to back the loans they provide.
However, they have little to no impetus to provide a reasonable interest rate on savings accounts; they'd much rather pay the absolute possible minimum the market (and regulation) will allow, and pocket the rest as profit.